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shall be reduced by $2K on September 1st of the summer
immediately succeeding each of Scotty’s and George’s
graduation from high school. (Illustration: Assuming Scotty
graduates from high school on 6/20/2004, the Periodic
Alimony would step down from $9K per month to $7K per month
effective 9/1/2004.)
* * * * * * *
4.2 The Additional Periodic Alimony Re: An Increase in
the Husband’s Compensation. * * * [T]he Husband shall pay
20% (the “20% Payment”) of the gross amount of any bonuses,
commissions or additional salary received in a calendar year
* * * to the Wife as additional Periodic Alimony * * *.
Pursuant to the Separation Agreement, petitioner paid Ms.
Skakel-Kracke $128,000 in 2000, which consisted of the $9,000
monthly payments plus 20 percent of his bonuses. In preparing
his 2000 Federal income tax return, petitioner deducted $128,000
as alimony payments. Respondent, in the notice of deficiency,
disallowed $48,000 of the payments ($2,000 each per month for
Scotty and George).
Discussion
Section 215(a) allows a deduction for amounts paid for
"alimony or separate maintenance payments" that are includable in
the recipient’s gross income under section 71(a). An alimony or
separate maintenance payment is defined by section 71(b). Sec.
215(b). Section 71(c) provides, in pertinent part:
(c) Payments to Support Children.–-
(1) In general.–-* * *[Amounts received as
alimony or separate maintenance payments] shall not
apply to that part of any payment which the terms of
the divorce or separation instrument fix (in terms of
an amount of money or a part of the payment) as a sum
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Last modified: May 25, 2011